In trading on Wednesday, shares of the Proshares Short MSCI EAFE ETF (EFZ - Get Report) entered into oversold territory, changing hands as low as $36.99 per share. We define oversold territory using the Relative Strength Index, or RSI, which is a technical analysis indicator used to measure momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30.

In the case of Proshares Short MSCI EAFE, the RSI reading has hit 29.9 — by comparison, the RSI reading for the S&P 500 is currently 68.9.

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A bullish investor could look at EFZ's 29.9 reading as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side.

Looking at a chart of one year performance (below), EFZ's low point in its 52 week range is $36.60 per share, with $53.76 as the 52 week high point — that compares with a last trade of $37.02. Proshares Short MSCI EAFE shares are currently trading down about 0.9% on the day.

Proshares Short MSCI EAFE 1 Year Performance Chart